The Waiheke Project: Overview of tourism, wine and development on Waiheke Island

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The Waiheke Project:
Overview of tourism, wine and development on
               Waiheke Island

                     Appendix to Report

                              Dr Lucy Baragwanath
                             School of Environment
                           The University of Auckland

The author of this report disclaims any liability for loss or damages that may be a
    result of using this report. The University of Auckland does not take any
 responsibility or accountability for the content of this report, and disclaims any
                                       liability.
Tourism and Wine on Waiheke Island:..........................................................................2
Waiheke Project Report Appendix ................................................................................2
  1. The Waiheke Project..............................................................................................2
  2. Tourism and wine in NZ: the context.....................................................................2
     2.1 Tourism context ...............................................................................................2
     2.2 Wine context....................................................................................................9
  3. The Waiheke Project............................................................................................10
     3.1 Background to the project .............................................................................10
     3.2 Objectives of the project ................................................................................10
     3.3 Methodology..................................................................................................10
  4. Waiheke ...............................................................................................................16
     4.1 History ............................................................................................................16
     4.2 Characteristics................................................................................................17
     4.3 Proximity to Auckland ....................................................................................17
     4.4 Changes over 20 years ...................................................................................17
     4.5 Council interaction on Waiheke .....................................................................18
     a. Campaign for Fair Ferry Fares..........................................................................20
     b. Love Matiatia ...................................................................................................22
     c. Waste on Waiheke ...........................................................................................23
     4.6 Waiheke tourism ............................................................................................26
     4.7 Wine on Waiheke ...........................................................................................28
     4.8 Wine tourism on Waiheke..............................................................................29
     4.9 The commercial viability of wine and wine tourism on Waiheke ..................31
     4.10 Imaginaries ..................................................................................................33
  Bibliography .............................................................................................................37
  Waiheke Visitor Survey Report Executive Summary ...............................................39

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Tourism and Wine on Waiheke Island:

                         Waiheke Project Report Appendix

1. The Waiheke Project
The research on Waiheke Island was conducted by researchers at the University of
Auckland as an internal study funded by the Vice-Chancellor’s Strategic Development
Fund. It was designed to develop a rich understanding of the sustainability of the
wine and tourism industries on Waiheke Island, and to identify key strategic issues of
interest to the University. It has done much more than this: it has revealed Waiheke
as a microcosm of some of the critical dynamics at play in Auckland and NZ more
generally relating to tangible and perceptual aspects of industry development,
community change, economic impacts and environmental modification; and the
interplay of these factors, particularly as they relate to two important industries in
NZ: tourism and wine.

This Appendix provides extra material and further detail to support the Waiheke
Project Report and should not be read as a standalone document.

2. Tourism and wine in NZ: the context

2.1 Tourism context
Tourism is one of NZ’s biggest export earners. For seven years it was the largest
earner, until 2009 when it dropped behind dairy as a result of the global economic
downturn. At the same time, overall spending in the tourism sector increased
because of more New Zealanders holidaying at home. Domestic spending increased
2.6% to $12.4 billion (Statistics NZ, 2009).

NZ’s tourism industry is an important national asset, which the Government is
actively seeking to protect and promote. While international tourism decreased 0.9
percent ($87 million) from the previous year to $9.3 billion and contributed 16.4
percent to New Zealand’s total exports of goods and services, domestic tourism
expenditure increased as fewer NZ tourists ventured abroad, rising 2.6% to $12.4
billion (Statistics New Zealand 2009). The significance of tourism to NZ’s economy
has been recognised by successive governments. Incumbent Prime Minister John Key
is also Minister of Tourism.

                                                                                     2
The briefing to the incoming Minister of Tourism in 2008 stated that tourism is
central to New Zealand’s economy. “Two and a half million visitors come to New
Zealand each year to experience world-class products and services. They travel to
the furthest regions of the country and many also pursue business and immigration
opportunities while they are here. Tourism generated $8.8 billion in foreign
exchange earnings in the year to March 2007. Add domestic tourism to the mix, and
total expenditure increases to $20.1 billion” (Ministry of Tourism 2008). It is also an
important source of employment. One in every 10 New Zealanders works in the
tourism industry (Ministry of Tourism 2007).

The Statistics NZ Tourism Satellite Account 20091 noted that tourism plays a
significant role in the New Zealand economy in terms of the production of goods and
services and the creation of employment opportunities. Tourism expenditure
includes spending by international and resident household tourists as well as
business and government travellers. International tourism expenditure includes
spending by foreign students studying in New Zealand for less than 12 months. Key
results for the year ended March 2009 are:

       •    Total tourism expenditure was $21.7 billion, increasing 1.1 percent from the
            previous year.
       •    International tourism decreased 0.9 percent ($87 million) from the previous
            year to $9.3 billion and contributed 16.4 percent to New Zealand’s total
            exports of goods and services.
       •    Domestic tourism expenditure was $12.4 billion, an increase of 2.6 percent
            from the previous year.
       •    Tourism generated a direct contribution to GDP of $6.4 billion, or 3.8 percent
            of GDP. This represents a decrease from 4.1 percent in the previous year.
       •    The indirect value added of industries supporting tourism generated an
            additional $8.7 billion to tourism.
       •    The tourism industry directly employed 94,600 full-time equivalent
            employees (or 4.9 percent of total employment in New Zealand), an increase
            of 0.4 percent from the previous year.
       •    Tourists generated $1.6 billion in goods and services tax (GST) revenue.

The Tourism Yield Research Programme undertaken by Lincoln University for the
Ministry of Tourism highlighted the importance of the sector to NZ. Key findings of
the programme were:
• Tourism is a net financial contributor to central government, primarily due to GST
revenue that central government receives from international tourism.
• Tourism is largely cost neutral for local government. In addition to direct financial
outcomes, the research identified considerable flow-on economic benefits to the
wider regional communities.
• Tourism provides a mix of social and environmental benefits and costs. Evidence
exists that tourism generates a range of benefits and costs for communities, but
communities continue to offer strong overall support for tourism.

1
    http://www.stats.govt.nz/reports/analytical-reports/tourism-satellite-account-2009/summary-results.aspx

                                                                                                              3
• There is no single ideal traveller type for NZ – each has merits against a variety of
indicators (e.g. residual income, public sector costs, carbon emissions and regional
dispersion). This highlights the importance of attracting a mix of travellers to enable
New Zealand to meet its social, cultural, environmental and economic goals (Yield
Research Programme 2007).

While growth slowed slightly over the past year, the tourism sector is continuing to
grow: the Ministry of Tourism has forecast that international visitor arrivals will
increase by 18.6% over the seven-year period from 2009-2015. This represents a
total increase over the forecast period of 455,000 arrivals and an average increase of
2.5% per annum (Ministry of Tourism 2009). Across this period, domestic trips by
New Zealand resident are forecast to increase from 51.1 million in 2008 to 53.7
million in 2015, up by 2.6 million or 5.1%, averaging 0.7% per annum (Ministry of
Tourism 2009).

Table 1: New Zealand tourism forecasts 2007–2013
             Component               2013 official forecast    Extended to 2015
             International visitor   3.2 million arrivals or   3.4 million arrivals
             arrivals                4.0% annual growth
             International visitor   $10.5 billion or 7.4%     $12 billion
             expenditure             annual growth
             Domestic overnight      18.3 million trips or     18.6 million trips
             trips                   0.6% annual growth
             Domestic expenditure $9.1 billion or 2.8%         $9.6 billion
             (day and overnight   annual growth
             trips)
Source: (Ministry of Tourism 2009)

Tourism is seen to have multiple indirect benefits for NZ, serving to help to diversify
the economy, contributing to New Zealand’s image and presence in offshore
markets, underpinning NZ’s aviation linkages to key markets, adding economic
vitality to regions through both international and domestic expenditure, generating
economic benefits from protected assets such as the conservation estate and
generating GST revenue from foreign exchange spending (Ministry of Tourism 2008).
As the NZ Tourism Strategy 2015 puts it:

   •   Tourism adds value to other export sectors by promoting the 100% Pure New
       Zealand brand internationally. It also adds value to industries within New
       Zealand that benefit from adding tourism experiences to their product
       offering, such as farm stays, factory tours, and winery restaurants.

   •   Tourism helps drive regional economic growth and supports the revitalisation
       of towns and communities. This helps build regional pride and creates
       employment opportunities.

                                                                                          4
•    Tourism provides Maori with important opportunities to nurture, celebrate,
          and present their culture to the world. Maori culture, in turn, adds a unique
          dimension to tourism in New Zealand.

     •    Tourism improves the value of national parks and other protected natural
          areas. It also benefits from them. The $8.8 million the Government spends
          each year on Fiordland National Park has helped generate 1600 jobs, $196
          million in spending in the regional economy, value-added income of $78
          million, and household income of $55 million. Concessionaires benefit from
          and add value to conservation lands.

     •    Tourism has helped drive local government investment in infrastructure and
          leisure facilities, such as museums, art galleries, and convention centres. It
          has also encouraged urban renewal. This investment helps meet the needs of
          residents and visitors alike (Ministry of Tourism 2007).

For such reasons, the Ministry of Tourism is a key portfolio. Its central role is to
implement the NZ Tourism Strategy 2015, which envisages that in 2015, tourism is
valued as the leading contributor to a sustainable New Zealand economy.

However, there are substantial challenges identified to achieving this goal. These
include growing concerns internationally about the impact of travel on climate
change and specifically the perceived carbon cost of travelling to NZ, and the
environmental impact of tourism within NZ2. In response, the Strategy emphasises
sustainability. “Tourism relies more than any other sector on our continuing
sustainability as a nation. This is because New Zealand itself is the product we are
selling” (Ministry of Tourism 2007).
        “The Strategy [NZ Tourism Strategy 2015] is underpinned by two key values,
        kaitiakitanga (guardianship) and manaakitanga (hospitality). These values
        provide the foundation for a sustainable approach to the development of our
        tourism industry” (Ministry of Tourism 2007).

Questions of sustainability are thus inextricably linked to the way in which tourism is
being understood and managed by the NZ Government. Sustainability is a
notoriously complex and contested concept. Influenced by the Brundtland Report
definition, the Tourism Strategy presents it in terms of sustainable development
which ‘…meets the needs of the present without compromising the ability of future
generations to meet their own needs’. “The principles of kaitiakitanga (guardianship)
and manaakitanga (hospitality) and are the basis for a uniquely New Zealand
approach to sustainability. By delivering on these principles, the tourism sector will
provide hospitality to its visitors while protecting and managing our culture and
environment” (Ministry of Tourism 2007).

2
 Other challenges identified are exchange rate fluctuations, and restricted aviation capacity; and locally, the
availability of appropriately qualified and skilled staff, and domestic air capacity and transport links (Ministry of
Tourism, 2007).

                                                                                                                        5
The Strategy develops a broad proposition of sustainability, incorporating economic
and social considerations as well as financial and economic factors:

   •   our customers will enjoy their time in New Zealand, and will want to travel
       here for the unique and sustainable tourism experiences we offer

   •   tourism businesses will be financially profitable, able to reinvest in their
       businesses, and attract and retain the skilled workers they need

   •   the natural environment will be protected and enhanced, and the
       environmental footprint of the tourism sector will continue to shrink

   •   we work with communities for mutual benefit.

“True sustainability reaches across all areas of life – environmental, economic, social,
and cultural. These areas are interdependent and mutually reinforcing. For the
tourism sector to prosper, we need to deliver on all of them” (Ministry of Tourism
2007).

The NZ Tourism Strategy draws explicit links between NZ’s tourism aspirations and
the growing international demand for sustainable products and services. “We
already have a reputation for being ‘clean and green’. This has been reinforced by
Tourism New Zealand’s 100% Pure New Zealand campaign. Managing our reputation
and delivering true sustainability will create opportunities that will benefit all New
Zealand businesses, including those in tourism” (Ministry of Tourism 2007).

NZ’s tourism industry is thus recognised as a vital asset of the country, and one
which successive governments actively seek to protect and promote. This concern is
also manifest at the regional level.
       [I]n terms of international tourism, the success of Auckland will significantly
       depend on the perceived environmental friendliness of New Zealand as a
       destination relative to other destinations. How the tourism industry
       innovates in light of this constraint will contribute to its success or decline
       (Auckland Regional Council 2009: 24).

Research conducted by the ARC in 2009 emphasised the importance of tourism to
Auckland’s economy. Using 2006 figures, it found:
   • 27% of total national tourism expenditure was spent in Auckland, amounting
       to $3.8 billion
   • Tourism directly generated $2 billion of GDP, equivalent to 4% of GDP
   • Auckland Airport received 70% of all NZ’s international visitors, and the sea
       port was the most popular of the NZ ports attracting 70 cruise ships
   • 7.4% of the workforce in Auckland is directly employed in tourism

Visitor arrivals to Auckland also increased considerably over 10 years, rising 66%
from 1998 to 2008 (Auckland Regional Council 2009). This growth is projected to
continue:

                                                                                      6
•   Total visits by travellers to Auckland Region Tourism Organisation are
       forecast to rise from 12.50m in 2008 to 13.66m in 2015 - an increase of 9.3%
       (1.16m) or 1.3% p.a.
   •   International visits are expected to increase from 2.49m in 2008 to 2.95m in
       2015, representing growth of 461,000 or 18.5%. The share of total visits
       generated by international visitors is expected to increase from 19.9% to
       21.6%.
   •   Domestic visits are expected to increase from 10.00m in 2008 to 10.71m in
       2015, representing growth of 702,100 or 7.0%. The share of total visits
       generated by domestic visitors is expected to decrease from 80.1% to 78.4%
       (Ministry of Tourism 2009)

Anticipated growth in the Auckland Region Tourism Organisation area is far greater
than in any other NZ region, estimated at 12.1% from 2008-2015 (Table 2). The
nearest is Fiordland at 9.9% (Ministry of Tourism 2009).

Table 2: Growth of tourism in Auckland Region
Domestic                        International                       Total
2008    2015   Growth    %      2008      2015    Growth    %       2008     2015     Growth   %
6,807 7,084    277       4.1%   17,449 20,106     2,657     15.2%   24,257   27,191   2,934    12.1%
Source: (Ministry of Tourism 2009)

The Tourism Strategy 2015 is consistent with other current strategies including the
programme being implemented to develop Auckland as an internationally
competitive city, with high-quality, attractive infrastructure, facilities, and
streetscapes. Starting in 2001 with the formation of Competitive Auckland, public
and private stakeholders across the region have worked to develop initiatives aimed
at improving Auckland’s economic prospects including the establishment of a
regional economic development agency, AucklandPlus and the Metro Action Plan.
Tourism has been a key industry of interest and particularly the promotion of
Auckland as a destination for tourists as well as investment. This was manifest in the
2007 visitor plan, Bringing the World To Auckland (AucklandPlus, 2007).

The plan focuses on what the Auckland region needs to do to establish itself as a
legitimate world class visitor destination. It is therefore concerned primarily with the
supply-side of the visitor market, meaning the growth and development of
Auckland’s visitor proposition (Vuletich 2008: 6). The research concluded that
Auckland’s visitor economy is a premium investment opportunity for Auckland, and
that it represents a low risk investment because making Auckland a more compelling
destination will also make Auckland a better place to live, work and play. Investing in
the visitor economy is therefore argued to effectively subsidise Auckland’s
transformation into a world class city-region (Vuletich, 2008: 1).

A key focus of Bringing the World to Auckland is determining how Auckland can
establish itself as a independent destination in its own right within New Zealand, but
until the visitor proposition is much more compelling international visitor activity in

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Auckland will continue to depend on the strength and popularity of the New Zealand
brand (Vuletich 2008), which in turn relies on perceptions of sustainability.

Concerns in the NZ Tourism Strategy about the sustainability of the tourism industry
are shared by tourism organisations in the Auckland region. The ARC Tourism
snapshot notes that according to key industry stakeholders, the main risk for New
Zealand, and for Auckland, seems to be the perception that a lot of carbon is
generated in getting to New Zealand. “Therefore, in terms of international tourism,
the success of Auckland will significantly depend on the perceived environmental
friendliness of New Zealand as a destination relative to other destinations. How the
tourism industry innovates in light of this constraint will contribute to its success or
decline” (Auckland Regional Council 2009: 24).

Thus tourism is of core importance to NZ as a whole, and to Auckland, both directly
and indirectly. Tourism is likely to continue to grow, although there are some major
challenges principally relating to sustainability – both in managing international
perceptions and minimising negative aspects (environmental, social and economic)
associated with growth. Improving Auckland’s tourism proposition is an important
way of improving Auckland’s economy. Bringing the World to Auckland suggested
that key features are that the CBD is the least positive aspect of Auckland’s tourism
proposition, that the hinterland opportunities are good but that access is difficult,
and that history is an important part. These can be addressed through revitalising
the CBD, improving connections to the hinterland, and telling better stories.

What better story could there be than Waiheke: the beautiful island, quantum
removed from downtown yet only 35 minutes away, offering the possibility of doing
everything from swimming to fine dining? Well-connected and easily accessible from
downtown Auckland, Waiheke is thus a critical element in Auckland’s tourism
offering. Appealing to domestic and international tourists, it offers a composite
package of enticements. Over half a million domestic and international tourists a
year already visit the island. It is easily accessible for cruise ship passengers, from the
Britomart transport hub, the airport buses, and the city hotels. Waiheke
consequently features prominently in Tourism Auckland advertising, combining
beaches and natural beauty with sophisticated cultural offerings.

Our Waiheke research offers a rich understanding of tourism on Waiheke, which
emerges as a microcosm of broader forces at play in Auckland and beyond. Our work
on Waiheke has shown the importance of tourism, the need to consider questions of
sustainability, and the interplay between tourism and other spheres of activity:
principally the wine industry, the host community and local governance.

The Waiheke project provides an insight into the indirect ways in which tourism fits
into NZ’s economy. It provides a direct flow of money into the local economy, but
also helps to develop it in other ways: tourists are drawn by the image of
Waiheke/NZ as pristine, remote, clean, friendly, and ‘100% Pure’. This image is
harnessed by other industries including wine: NZ Winegrowers ‘Pure Discovery’. It is
also leveraged by local enterprises, for example Destiny Bay vineyards presents

                                                                                         8
‘Waiheke: virtually its own country’, building on the established reputation and
reinforcing it. In such ways tourism and other industries complement each other.

The Waiheke research provides a lens into a critical aspect of Auckland’s economy,
linking to work already done and projects still unfolding at the national and regional
level, and within the University of Auckland. It connects with broader questions
around the economic, social and environmental facets of development, and is shot
through with insights into the importance of questions of sustainability – perceptual
and actual.
    • NZ Tourism Strategy 2015
    • ETA – transformation of Auckland
    • Regional focus – Metro Project, Bringing the World to Auckland and Supercity
        focus
    • University – Thematic Research Initative focusing on ‘Sustainable Auckland’

2.2 Wine context
The wine industry has become a key exemplar of diversification and export success
for NZ. In 2009 exports exceeded $1 billion for the first time. The growth of the
industry and success of NZ wines abroad – particularly Marlborough Sauvignon Blanc
– has served as an important component of the Brand NZ marketing campaign. As
Tourism New Zealand’s website (www.newzealand.com) puts it:
        New Zealand is a premier new-world wine country, producing award-winning
        wines that reflect the clean air and sunshine. Top quality wines are exported
        to cellars worldwide (Tourism NZ, 2010).

Tourism NZ emphasises the phenomenal growth in export income from NZ wine
production over the past 20 years, at nearly 24 percent each year, and notes that the
New Zealand wine industry contributes more than NZ$1.5 billion a year to the
national economy while the industry supports more than 16,500 full-time jobs. In
addition to the international success of the wine industry, a key theme in Tourism NZ
emphasis is the ‘boutique’ nature of much of NZ’s wine production. The vast
majority of vineyards in NZ are small, with only five in the NZ Winegrowers’ Category
3 production range3.

NZ’s reputation for growing wine has been fostered by the international branding
strategy (100% Pure) and echoed in the NZ Winegrowers Association strategy (Pure
Discovery). It has become a beacon for NZ’s economic development and
diversification. It also fits neatly with NZ’s tourism strategy and proposition. Parallel
with the increase in the number of vineyards and the growth of the industry, wine
has increasingly become a prominent component of NZ’s tourism proposition. ‘Wine
regions’ have been identified the length of the country, contributing to the tourism
opportunities in each place. Leading wine regions include Auckland, Gisborne,

3
 Category one wineries produce less than 200,000 litres; category two produce 20,000 - 2 million litres and
category three produces in excess of 2 million litres (NZWG, 2009).

                                                                                                              9
Wairarapa (Martinborough) and Hawke's Bay in the North Island, and Marlborough,
Central Otago, Canterbury in the South Island4.

For the wine industry, tourism serves two functions: as a direct sales opportunity
through cellar doors or vineyard restaurants, and indirectly through the associations
that people make when visiting a place. Research suggests that wine is a potent
souvenir that can be enjoyed at a later time. In NZ, the ‘boutique’ image helps – the
‘authentic’ connection between tourists and the owners or winemaker or even just
the cellar staff serve an important function.

3. The Waiheke Project

3.1 Background to the project
The University of Auckland has several important connections with Waiheke Island,
prompting the decision to undertake a strategic overview of issues relating to the
island.

3.2 Objectives of the project
The project had three key objectives.
    i.     To develop a comprehensive understanding of tourism and wine tourism
           on Waiheke
    ii.    To develop an understanding of the wine industry on Waiheke
    iii.   To develop relationships between the University and different
           stakeholders connected with Waiheke (public officials, wine industry
           representatives, and tourist organisations).

3.3 Methodology
The project began in December 2008 under the guidance of Dr Lucy Baragwanath
and Dr Nick Lewis, and ran for 18 months through four phases, described below.

Phase 1: Waiheke Wine Project Reference Group
A reference group was convened in December 2008 to advise on the development of
the project and to comment on the research findings. We were fortunate to attract
an extremely experienced and skilled group:

David Irving (Chair)              Chair of Cable Bay Vineyards on Waiheke, was the co-
                                  founder and former chair of the IceHouse business
                                  growth centre supported by the University of Auckland
                                  Business School, and has a distinguished corporate
                                  pedigree including as CEO of Heinz Wattie.
Chris Canning                     Past President of Waiheke Winegrowers’ Association
                                  and owner of The Hay Paddock vineyard on Waiheke.
Mike Spratt                       President of Waiheke Winegrowers’ Association and
                                  owner of Destiny Bay Vineyards on Waiheke.
Philip Gregan                     CEO of New Zealand Winegrowers’ Association.

4
  http://www.newzealand.com/travel/media/features/food-&-wine/food&wine_new-zealand-wine-
industryinfo_feature.cfm

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Louise Marra                 Director of GUEDO (Government Urban Economic
                             Development Office) in Auckland and works for the
                             Ministry of Economic Development, and lives on
                             Waiheke.
Megan Tyler                  Planning Manager Hauraki Gulf Islands for Auckland
                             City Council.
Alastair Smaill              Group Manager Environmental Planning at Auckland
                             Regional Council.
Geoff Whitcher               Business Development Manager at the University of
                             Auckland Business School.
Glenn McGregor               Director of the School of Environment at the University
                             of Auckland.
Randy Weaver                 University Winemaker and Director of the Wine
                             Science Programme at the University of Auckland.
                             Trained in California, Randy has had extensive
                             involvement in the NZ wine industry since the 1970s.
Nick Lewis                   Senior Lecturer in Economic Geography at the
                             University of Auckland.
Lucy Baragwanath             Postdoctoral Research Fellow at the University of
                             Auckland managing the Waiheke Wine Project.

The reference group provided invaluable advice and feedback in the development of
the project and on the reports produced.

Phase 2: Waiheke Island Visitor Survey
The second phase involved a comprehensive survey of visitors to Waiheke Island.
The need for the survey research emerged during the scoping of the broader study
examining the development of wine tourism and the wine industry more generally
on Waiheke, within the context of the development of the Auckland region. This
required basic data to be collected to provide a baseline on which to develop more
sophisticated analysis of the processes at work. The specific research questions
were:
       Who is visiting Waiheke?
       What are the specific interests of these visitors?
       How do they find their experience on Waiheke?
       What is the significance of the wine component to Waiheke tourism?
       Are there areas for improvement?

Survey questionnaires were developed and administered during the peak domestic
tourist season in late January and early February 2009. 1141 groups were surveyed
on the return trip from Waiheke to Auckland on the passenger and vehicle ferries,
capturing the activities of approximately 3600 people. This provided a useful
snapshot of the demographic profile of visitors during this period, activities they
undertook on the island, and their experience of Waiheke. As the first tourism survey
conducted since 2003, it provided baseline information on visitors to Waiheke
invaluable for many stakeholders. The Waiheke Island Visitor Survey Report

                                                                                  11
Executive Summary is found at the end of this report (Baragwanath and Lewis
2009a).

Phase 3: In-depth interviews with stakeholders involved in Waiheke
The third phase of the project involved in-depth interviews with principals of wine
enterprises and other key informants to find out about wine and wine tourism on
Waiheke. We contacted every wine producer on Waiheke requesting an interview,
and interviewed representatives from 12 wine enterprises. Three others sent
information by letter or email, and we were unable to contact the remainder.

Parallel to our focus on wine tourism, we conducted interviews and more informal
conversations with Waiheke political leaders, prominent community members, and
officials within local, regional and national agencies connected with economic
development in different capacities (Table 3).

Interviews lasted between 30 minutes and two hours. Wine enterprise
representatives were provided with a template with a range of questions about their
operations.
Table 3: Interviewees
           Position                       Organisation
           Owner                          The Hay Paddock
           Consultant                     Vine to Wine
           Shareholder                    Cable Bay Vineyards
           Owner                          Destiny Bay
           Manager                        Goldwater Estate
           Chair                          Cable Bay
           Shareholder                    Cable Bay
           Owner                          Connells Bay Sculpture Park
           General manager                Cable Bay Vineyards
           Winemaker and                  Cable Bay Vineyards
           shareholder
           Manager                        Stonyridge
           Owner                          Kennedy Point Vineyard
           Winemaker                      Awaroa
           Owner                          Te Whau
           Owner                          Jurassic Ridge
           Owner                          Obsidian
           Former winemaker and           Obsidian
           shareholder
           Owner                          Mudbrick Vineyard
           Owner                          Topknot Hill Vineyard/Wild on Waiheke
                                          Bragato, grower, etc
           Officials
           Planning Manager,              Auckland City Council
           Hauraki Gulf Islands

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Account Manager                Auckland City Council
           Environmental Planner,         Auckland Regional Council
           Waiheke
           Environmental Planning         Auckland Regional Council
           Manager
           Research and Monitoring        Auckland Regional Council
           Manager
           Auckland City Councillor       Auckland City Council
           for Waiheke
           Social policy analyst          Auckland Regional Council
           Transport planner              ARTA
           Regional CEO                   NIWA
           Former head of                 ARC
           environmental policy
           Wine chemist, former           ESR
           Waiheke resident
           Others
           Wine commentator
           Waiheke residents              1 resident since 1945
                                          1 resident for 30 years
                                          1 resident for 10 years
                                          2 resident for 5 years
           Winemaker                      University of Auckland
           CEO                            Fullers
           Marketing Manager              SeaLink
           CEO                            Tourism Auckland
           Owner                          Ananda Tours
           Owner                          Vino Vino restaurant, Waiheke
           CEO                            NZ Winegrowers Association
           President and                  Waiheke Winegrowers Association
           Past President

We also engaged in participant observation on Waiheke to develop a sense of the
tourism and wine context on Waiheke. We attended a range of events including the
Waiheke Wine Festival, Jassy Dean Garden Safari, Headland sculpture exhibition and
Onetangi beach races to get a sense of what the island has to offer tourists. As part
of the process we undertook substantial background research to bring together any
pertinent information and help build a better understanding of Waiheke’s
development.

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Phase 4: Presentation of findings
We collated and analysed our findings and presented them in a range of different
media to a variety of audiences.

Academic papers
We have four academic papers in preparation presenting different aspects of the
Waiheke study (Baragwanath, Howland, and Lewis 2010; Baragwanath and Lewis
2010c, 2010a, 2010b).

Waiheke Island Visitor Survey Report (Baragwanath and Lewis 2009a)
The survey findings were presented in a 60-page Report and Executive Summary
which were made available to any interested parties, including interviewees on
Waiheke and reference group representatives. We presented the findings to the
ferry companies Fullers and SeaLink in recognition of their assistance in allowing us
access to the ferries to complete the survey questionnaires.

Conference presentations
Our findings were presented in papers delivered at three conferences targeted
principally at the wine industry:
    • Romeo Bragato Conference, Napier, June 2009 (Baragwanath, Lewis, and
       Priestley 2009)
    • Agri-Foods XVI Conference, Auckland, November 2009 (Baragwanath and
       Lewis 2009b)
    • Academy of Wine Business Research Conference, Auckland, February 2010
       (presentation)

An Industry Afternoon was organised as part of the Academy of Wine Business
Research conference to which members of the wine industry were invited. This
incorporated a panel discussion including academic delegates and representatives
from the local industry and wine industry business organisation. As part of the two
Auckland conferences, we took the delegates on field trips to Waiheke to visit some
of the vineyards and presented an overview of our research and findings.

Industry presentations
Findings were presented to the New Zealand Winegrowers’ Association and the
Waiheke Winegrowers’ Association and to the two major ferry companies Fullers
and SeaLink.

Media presentations
Aspects of our research were presented on the ASB Business News in August 2009
and in the NZ Herald in March 2010 (Baragwanath and Lewis 2010d).

Evaluation of research
Successes
The project enabled resources to be collated from a wide range of sources in order
to develop a broad understanding of strategic issues relating to the development of

                                                                                    14
the tourism and wine industries on Waiheke. It had a high level of support and
engagement from many of the stakeholders and key individuals involved in different
capacities. Our researchers found that the University of Auckland is generally seen as
having a solid, neutral and reputable research reputation, meaning that people in
different parts of the research process were happy to be involved (ranging from
survey respondents through to interviewees). Through this process we have been
able to identify a range of issues of strategic importance to the University, but also
to people in different organisations involved in the process. Importantly,
relationships and networks have been established between the University and other
organisations on Waiheke to the mutual benefit of all, with the potential for further
development.

Limitations
The survey research that we carried out presents a snapshot of Waiheke tourism at
the peak domestic season and therefore cannot be generalised. It would be
beneficial to have follow-up studies at different times of the year, and for the survey
to be replicated on a regular basis to track changes and patterns of visitation.

                                                                                     15
4. Waiheke
Waiheke Island lies in the Hauraki Gulf, 17 kilometres from central Auckland. Rocky
headlands, coves and golden beaches, regenerating native forest, and undulating
hills create a striking landscape. Waiheke contains the only possum-free vestiges of
Auckland coastal forest, although it was largely deforested by 1860. Its coastline is
extremely diverse with rocky headlands and coves and golden sand ocean beaches
to the north, while the southern and eastern sides are more tidal with mudflats
providing good pickings for shellfish and wading birds. Transverse faultlines run
through the island and the topography is undulating to downright hilly. Waiheke’s
climate is widely claimed to be slightly warmer than Auckland with slightly lower
rainfall than most New Zealand winegrowing areas, although this is debated5
(Cooper, 2002, Kelly, 2007).

Waiheke is administered by Auckland Regional Council and Auckland City Council at
present, and will be incorporated into the new unitary Auckland Council after local
body elections in October 2008.

4.1 History
Waiheke has a history of contested development and ongoing change. Maori
settlement evolved through four discrete periods demarcated by violent takeover
bids as different groupings moved through, taking advantage of its assets (shellfish,
fish). This culminated in the occupation by Ngati Paoa at the time of European
arrival, whose rohe extended to the Firth of Thames and Coromandel (Monin 1992;
Picard 2005; Picard and Picard 1993). The next wave of development and change
was unleashed with the arrival of Europeans. In the early 1800s Waiheke was
covered in kauri forest. Prized as spars and masts for sailing ships, the kauri were
felled wholesale and towed to the mainland for processing, resulted in the island’s
complete deforestation by 1860. Exposed to the elements, the steep hillsides of
Waiheke were then subject to serious erosion. Small settlements developed around
the Waiheke coastline. Cattle and sheep farming succeeded timber, always fairly
marginal as a result of the extreme erosion that resulted from the felling of the
forest cover on the steep terrain.

Waiheke’s population was restricted throughout much of the 20th century by the
dearth of economic opportunities on the island and the lack of easy access to the
mainland. Following World War Two Waiheke was opened up substantially for
development. Building restrictions operated everywhere except on Waiheke, which
had virtually no local government or bylaws. In addition to farmers and fishers, the
island attracted people wanting cheap land near Auckland – small numbers made

5
 Waiheke’s temperate maritime climate is presented by wine commentators as closely akin to that of Bordeaux,
accounting for the emphasis on grape style (Kelly, 2009): Merlot followed by Cabernet is the most-planted
variety, although there is increasing interest in Syrah, Chardonnay and others (Kelly, 2009). Cooper (2002)
contends that statistical data do not support the claim that Waiheke is hotter and drier than the mainland during
the growing season, and the island’s sites vary considerably in terms of terms of proximity to the coast and
aspect, and considers that several varieties of grape can be grown there.

                                                                                                              16
the lengthy commute on the early service which began in 1946 (Picard and Picard
1993). However, commuting was not an easy option – one long-time resident spoke
of his father’s 1 ¾ hour trip each way to Auckland every day. In 1945 the population
was 835, increasing to around 2000 by the mid-1950s as a result of Auckland’s acute
housing shortage and the demand for land for holiday purposes (Picard, 2005: 43).

4.2 Characteristics
Key characteristics of Waiheke:
    • proximity to Auckland
    • reputation as summertime visitor destination
    • vast changes over 20 years:
          o community turnover
          o economic base
          o landscape modification
          o population increase

4.3 Proximity to Auckland
Waiheke is dependent on the ferry service, and the arrival of the fast ferries in 1987
brought about substantial changes. At first the service was restricted and not
particularly reliable, but it shortened the journey to 35 minutes. By the early 1990s,
it had improved and was becoming increasingly comprehensive. In 2010, passenger
ferries are operated by Fullers and make the 35 minute trip from downtown
Auckland to Matiatia Bay on Waiheke hourly from dawn to midnight6. Vehicle and
passenger ferries are operated by SeaLink and take 45 minutes to run from Half
Moon Bay to Kennedy Point on Waiheke hourly, with a more restricted service from
downtown Auckland7. Waiheke Shipping also provides a freight and vehicle service
between Half Moon Bay on the mainland and Waiheke.

4.4 Changes over 20 years
Ferries are seldom delayed or cancelled, making the service a viable connection with
the CBD which compares favourably with the time and distance confronted by
commuters across greater Auckland. Waiheke has become an increasingly viable
residential option and effectively a maritime suburb of Auckland. Its population went
from 3,500 in the late 1970s and 4,500 in 1986 to almost 6,000 by 1990, and 8,000
by 2005 (Picard, 2005), around where it remains. While the number has remained
constant, the population turnover has been extremely high: 47% of residents in the
2006 Census lived elsewhere five years previously. This confirms that island living
doesn’t suit everybody, but in practical terms Waiheke’s isolation has progressively
diminished. It is now easier to commute, and about 1500 residents do so, most to
work in the professional belt close to the ferry terminal in downtown Auckland.

The rise in property values has affected who is able to purchase property on
Waiheke, contributing to the changing socioeconomic profile of the island. Waiheke
historically attracted a diverse population of residents. During the second half of the

6
    http://www.fullers.co.nz/tickets-fares/timetables/waiheke-island.php
7
    http://www.subritzky.co.nz/waiheke-island/timetable.html

                                                                                     17
twentieth century, Waiheke became renowned for the diversity of its population,
many seeking to escape the ‘mainstream’ and drawn to Waiheke’s rural seclusion
and its peaceful – even spiritual – qualities. It has an entrenched association with
‘alternative’ lifestyles, ‘counter-cultural’ developments and political activism. Long
renowned for its appeal to ‘greenies’, ‘hippies’, and those seeking non-traditional
living arrangements (sole parents, beneficiaries, and creative types of all
descriptions), Waiheke has strong associations with ‘counter-cultural’ tendencies.
These range across the spectrum from its ‘island time’ reputation of relaxed
tranquillity far removed from the hustle of Auckland city, through to strident
positioning around issues from nuclear-free and GE-free through to controversy over
development and, importantly, the actions of Auckland City Council. It has however
become increasingly unaffordable for low-income residents to afford soaring rates
and rents and rising ferry costs. The socioeconomic changes are reflected in the
landscape, with the proliferation of large, imposing houses on subdivided farms,
particularly apparent around the western end of the island at Matiatia Bay and
Church Bay. Many of these houses are sited on ridge lines and command fabulous
views – as well as being highly visible and a tangible beacon of the changes afoot.

The demographic changes have a profound cultural dimension: a repeated theme
emerging in interviews with long-standing Waiheke residents is the change in
attitude that has occurred alongside rising land prices. Waiheke is no longer a refuge
from the mainstream but a bustling maritime suburb of Auckland. Several island-
based interviewees noted that many of the people once drawn to Waiheke for its
remoteness have relocated to more remote areas – some to Great Barrier, an island
100 kilometres north of Auckland which marks the northern boundary of the Hauraki
Gulf, and some to further removed places on the mainland.

The changes are also reflected in Waiheke’s economy, particularly in the increasing
development of the tourism and wine industries. Waiheke has long been popular as
a destination for Aucklanders on holiday. Tourism began in the 1840s, and from the
1890s between 2000 and 4000 people took the steamer to remote Cowes Bay at the
eastern end of the island for the New Year Regatta (Monin 1992). For boaties,
Waiheke’s sheltered anchorages and golden beaches provide an ideal destination for
trips away from the ‘city of sails’. The island’s increasing accessibility has made it
available to increasing numbers of visitors drawn to its combination of attractions:
natural beauty, beaches, rural landscape and forests; the diverse population, relaxed
pace of life, peace and tranquillity; and its cosmopolitan offerings of art, food and
wine.

4.5 Council interaction on Waiheke
The feisty political activism of the Waiheke community, past and present, is clearly
evident in its interaction with regulatory authorities. As part of the local government
amalgamation of 1989 Waiheke was brought into the ambit of Auckland City Council,
losing its county council but gaining its own community board. Sandra Lee, the last
Chair of the Waiheke County Council, became the island’s first Councillor.
Amalgamation was fiercely resisted by the local community, much as the Devonport
community sought to retain independence from the rest of the North Shore. At

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present, the City Councillor for Waiheke is Denise Roche, a left-leaning councillor in a
right-leaning council, and high levels of political activism continue. Two current
issues are:

1. The structure of local governance in Auckland is being overhauled, with the
government supporting the creation of a new ‘super city’ which will incorporate the
eight existing territorial authorities. An 18 month Royal Commission on Auckland’s
Governance received 1500 submissions, of which 800 came from Waiheke (pers.
comm., Auckland City Councillor for Waiheke). The process has been subjected to
close scrutiny by island residents, with a raft of further submissions being lodged as
the government progresses with the Auckland Governance bill.

2. The Gulf islands were the first under the RMA to have an operational district plan
which became operational in 1996. It was therefore the first to have its plan
reviewed, and the Auckland City Council’s Proposed District Plan – Hauraki Gulf
Islands has just emerged from two years of preparation, consultation and hearings.
There was intense interest from islanders: 7000 submissions were received from
Waiheke (from its population of 8000) (pers. comm., Planning Manager Hauraki Gulf
Islands, Auckland City Council). Submissions spanned a spectrum of issues, and
residents aligned in different ways. Several different organisations were set up
around the District Plan review: the Gulf District Plan Association (GDPA), the
Waiheke Island Community Planning Group (WICPG), and the Waiheke Island
Sustainable Development Group (WISDG). While many submissions came from the
same people and groups, this demonstrates that “People [on Waiheke] are very
interested and quite well-informed – they are interested in their governance and in
politics” (Interview, Planning Manager Hauraki Gulf Islands, Auckland City Council).

From the Council perspective, the hearings on the District Plan went well. “We made
a few friends, hopefully no new enemies, and we built some understanding. It
represents democracy in action: it’s a good process, even if it is costly and time
consuming” (Interview, Planning Manager Hauraki Gulf Islands, Auckland City
Council). However, the hearings panel were subjected to highly emotional
presentations, and were called “fascist, Hitler’s squad and other unhelpful
comments” (ibid).

The opposition attracted by the District Plan and Auckland Governance processes is
reflected in ongoing negativity attaching to everyday Council activity on Waiheke.
        I have to say that Council is generally not well-loved. This harks back to the
        Waiheke County Council which was given to ACC in the reshuffle [of local
        government in 1989]… It is inevitable that the council is in the centre of the
        tussle (interview, Planning Manager Hauraki Gulf Islands, Auckland City
        Council).

Evidence of the Council’s unpopularity is widespread, and was one of the foremost
reasons provided by interviewees as an obstruction to running a business on the
island. Particular bones of contention were the length of time taken to receive
resource consent and inadequate return on rates expenditure.

                                                                                     19
“Council… is a pain in the arse. You have to learn to make sure that you do
       things properly – meaning their way – or it’s a nightmare” (interview,
       Waiheke restaurateur).

       “We needed to get resource consent for the winery, and it was a nightmare –
       it took 14 months to get a resource consent” (interview, Waiheke wine-maker
       and restaurateur).

       “The Council is so obstructive on Waiheke. The difference [with Matakana] is
       that [the local entrepreneur] has just been able to get on and do it”
       (interview, Waiheke resident and tourism business owner).

       “You need tenacity to build on Waiheke: we wanted to move the building
       envelope [arbitrarily set by the Council] five metres to protect an ancient
       pohutukawa, and it cost $68,000 and a trip to the Environment Court”
       (interview, local resident).

       “Auckland City Council doesn’t ‘get it’ – Waiheke needs to retain its point of
       difference” (interview, local resident).

Yet the City Council is in an invidious position. As the Council’s Planning Manager for
the Gulf Islands noted, “in some ways, they [the Waiheke residents] are treated
differently, for example the District Plan has an Islands section. But in other ways…
there’s a balance… And you’re damned if you do and damned if you don’t”.
Certainly, it is the expectation of residents that they will be treated differently. As
the Planning Manager put it, “Waihitians don’t see themselves in the context of
Auckland City, which is the Council focus and requires a whole of council approach.
They see themselves as special”.

Three examples of political dissent and community activism on Waiheke are
described below.

a. Campaign for Fair Ferry Fares
Most access to Waiheke is controlled by two commercial ferry operators. The
majority of passenger traffic is carried by Fullers, the passenger ferry company
operating ferries between Auckland’s downtown and Waiheke’s Matiatia Bay. This
provides the opportunity for people to express dissatisfaction at various parts of its
service.

Fullers’ ferry operations are entirely commercial. Its ferries run hourly from
downtown between around 5.30 am to 11.45 pm, and from Waiheke between 6 am
to 12.30 am. The standard return fare in 2009 is $32 for adults, although there are a
range of concessions available. In an interview the CEO of Fullers noted that:
        The ultimate challenge as sole operator is to beat the myth of monopoly.
        You’re only a monopoly if you behave like one, so we try to avoid monopolistic
        behaviour (CEO of Fullers, June 2009).

                                                                                        20
Fullers is roundly criticised by some island residents, particularly when fares are
increased. In response, various Waiheke residents mobilise in different ways: for
example, the website ‘Fullerswatch.org.nz’, the Facebook group ‘We hate Fullers and
their poxy price rises’, and the C4FFF (Campaign for Fair Ferry Fares) campaign.
C4FFF has publicly promoted its opposition to Fullers’ fares through a string of
actions. In 2008, they organised a protest at Matiatia against the fare increase on
monthly passes, assembling food packages worth $44 (the amount of the increase)
to show ferry-users how much would be coming out of their food budget. The C4FFF
press release noted:
        Over the past six years, Waiheke commuters have faced dramatic price hikes
        of 52%. The latest increase of 12.7% has boosted the monthly commuters’
        pass from $300 to $344 and, for some Waiheke families, the household
        budget can’t stretch any further
        (http://www.scoop.co.nz/stories/AK0809/S00333.htm).

In June 2009 the group presented the Auckland Central MP Nikki Kaye (also a
Waiheke resident) with a petition calling for accountability on the Matiatia to
Auckland route such that fares could not be raised without consultation with the
governing transport authority and for regulation or fair competition on the route
(source: Fullerswatch8).

The unpopularity of Fullers among some island residents was a repeated theme in
our interviews. One interviewee described widespread resentment of residents
“held to ransom by the ferry operator”. Dissatisfaction with the ferry service also
registered in the visitor survey we conducted during the peak tourist season: a
significant proportion of negative comments reflected the ferry service, including the
cost of the fare, the crowd control at the quays, and the cleanliness of the boats.

However, interviews with business operators on or connected with Waiheke were
more forgiving, noting that “Fullers provides an excellent service (tourism
operator)”, and that “Fullers does a good job of getting people on the island, but not
so well once they’re on it” (restaurant operator). Several expressed bewilderment at
the vehemence of anti-Fullers sentiment.
    I’m amazed how people hate Fullers. I can’t understand it – the service is very
    good, and the residents are living in one of the best places on earth – why do they
    complain? (interview, Marketing Manager, SeaLink).

The CEO of Fullers emphasised that in their entirely commercial operation, there is a
trade-off between the price of tickets and the comprehensiveness of the service.
Fullers seeks to capitalise on the different needs of different ferry-users: daily
commuters who might value a comprehensive service including early morning boats,
residents primarily based on the island who might prefer lower fares and a reduced
service (but might cavil at the reduced freight service) and whose fares in effect
subsidise the off-peak services, visitors who might prefer lower fares and daytime-

8
    http://fullerswatch.blogspot.com/2009/06/nikky-kaye-mp-to-present-c4fff.html

                                                                                    21
only boats and so forth. The CEO was fatalistic about the ‘bad press’ that the
company attracts, viewing it as inevitable given the multiple, competing interests.

Different sentiments expressed around the ferry service demonstrate the way in
which different imaginaries of Waiheke come into conflict, which centres around
who uses the ferries and when, and what parts of it get subsidised by other parts.
This allows us to perceive that the ferry is an inevitable and absolutely central part of
life on Waiheke, with multiple meanings attached to it. Debates around pricing of
fares cut to the core of what the island is about. These range from islanders’ ‘right’
to a reasonably-priced ferry service to islanders’ need for a comprehensive service to
the ferry operator’s commercial imperative. In practice these multiple meanings
represent a series of contradictions which are unstable and messy.

The ferry operator seeks to take advantage of the multiple meanings by offering a
range of fare structures (including a discounted fare for estranged parents
accompanying a child to a partner on or off the island! (pers. comm., CEO Fullers).
And in Waiheke context, the operator must also be sensitive to and prepared for
opposition. This example cuts through any sense that there is a singular Waiheke
community or that interests are stable.

b. Love Matiatia
 In 2000, Auckland City Council and the then Mayor of Auckland, John Banks,
endorsed a proposed $35 million commercial and residential development at
Matiatia Bay on a property bought for $3.5 million by Waitemata Infrastructure Ltd
(WIL). Matiatia is the gateway to Waiheke and the first place that a visitor sees. The
scheme was seen as an overt and highly symbolic move to commercialise the island.
Many of the details of the scheme seemed to confirm this impression, and for many
island residents suggested a garish development that disturbed both the exiting
commercial centre and the rural idyll of Waiheke.

In opposition, residents formed the ‘Community and People of Waiheke’ (CAPOW)
which attracted 1500 members to oppose the scheme. A fundraising concert, Love
Matiatia, raised around $40,000 to pay for legal representation, and the case went
to the High Court. The campaign stretched across a mayoral election in which the
incumbent was defeated. The new Mayor introduced a new proposal for Auckland
City council to buy the property from the developers for $12.5 million
(http://waihekepedia.com/Matiatia; CAPOW website (www.capow.org.nz). The land
is to remain in Council ownership, with some leased for development to be guided
through a process open to public scrutiny.

The issue galvanised a range of opposition from multiple quarters. While the CAPOW
action was a local response by people in the community unhappy at the notion of
inappropriate development, their actions were supported by the group of wealthy
adjacent property-owners in Church Bay who contributed financially and used their
connections with the council and the developers to influence the proceedings. As
one of this group commented:

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